• IRS Issues Guidance to Encourage Establishment of Health Savings Accounts
  • April 23, 2004
  • Law Firm: Stradley Ronon Stevens & Young, LLP - Office
  • On March 30, 2004, the Internal Revenue Service issued guidance regarding health savings accounts ("HSAs"), which were created as of January 1, 2004 by the new Medicare prescription drug law that was enacted last December. The IRS issued the guidance to make it easy to operate HSAs in accordance with the law and to encourage both employers and individuals to contribute to HSAs. The new law is intended to assist employers in designing their health plans on a more cost effective basis and to provide tax incentives to individuals to accumulate funds to pay future medical costs. HSAs should be seriously considered by both employers as well as individuals who are looking for ways to reduce their health care costs.